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CASE STUDY/RESEARCH.
Question 1: Explain why the supply chain can dramatically impact a company's base performance
ANS:
Supply chain management involves the management of information flows between and among stages in a supply chain to maximize total supply chain effectiveness and profitability. The dozens of steps are required to achieve and carry out each of the above components. SCM software can enable an organization to generate efficiencies within these steps by automating and improving the information flows throughout and among the different supply chain components. If one member of the supply chain makes a reckless decision it can impact the entire supply chain. This is what
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In order for a company to quickly understand issues within the supply chain, the company must closely monitor its CRM system and identify product quality issues quickly.
Question 4: How could BPR help uncover issues in a company’s supply chain?
ANS:
Business process reengineering (BPR) is the analysis and redesign of workflow within and between enterprises. The purpose of BPR is to make all business processes the best-in-class. Michael Hammer and James Champy published their best-selling book, reengineering the Corporation, where the authors promoted the idea of radically redesigning the enterprise by wiping the slate clean. New information technology, including the ability for people throughout the supply chain to communicate in real time and the ability for controls and monitoring to be instituted throughout the supply chain, is often a driver of process reengineering within the organization. By reengineering workflows with better quality controls within the production process, companies can more easily uncover issues within the supply chain at their source. Through breaking down the processes of the business and organizing around outcomes, companies can uncover and remove inefficiencies in their processes. In the insurance industry, claims typically took 31 days to
SCM help Tesco to ensuring that the right quantity of part for the production or products that sale is arrive at the right time to their customer and also keeping the cost of transportation as low as possible when delivers to the customer. SCM is a management concept that integrates the management of supply chain processes in term of supplier management, inventory management, payment management, financial management, and distribution management. Although each department is different from its nature because some department are providing service to the customer whereas some department are produce products, each department has been controlled by their individual system respectively by adopting SCM system. This system also enables all the parties which are suppliers, customer and manufactures to check the same information at the same time when there is any changes of the information from any party will change the information from other
The Supply Chain Management process is at the very center of all the core operational processes of a company. It plays the role of a central nervous system regulating the product flow by managing the associated information flow that runs through a company. It has very strong linkages with major core processes like product development management, purchasing management and customer relationship management.
A thorough analysis of all the main supply chain components promotes efficiency advantage – the provision of higher throughput by superior business processes (Seghal, 2011).
Like Logistics, Supply Chain Management is an essential element of operational efficiency. The impact that supply chain has on our organization is substantial and exponential. Two of the main ways SCM affects business include: boosts customer service and our overall bottom line. Supply chain impacts our customer service by making sure the right product assortment and quantity are
Michael Hammer’s “Reengineering Work: Don’t Automate, Obliterate” is an article on the problems and some solutions businesses used to overcome their issues of wasting time and money on inadequate operation processes. As businesses grow, the operation processes grow as well and the way the process is handled needs to change to accommodate the growth to be more efficient. If you just add more the current process without considering a new way to handle the process, you end up with a larger problem then you began with. What Hammer is trying to get across is that instead of adding to current processes, you need to eliminate them all together and create a new design for the process. This new design depending on the purpose of the business
The world today is ever changing, moving from one phase to the other and the only thing that does not change is ‘change’ itself. As the modern business environment is propelled by the three Cs namely Customer, Competition and Change, organisations are always looking for new business innovations to salvage their ailing enterprise. (Hammer and Champy, 1993) One of such solutions that have been identified and used by many companies is the Business Process Re-engineering or shortened as BPR.
Supply chain management plays a very crucial role in the success of any organization and how it can cater to a customer’s need and provide the maximum satisfaction. Supply chain management is essentially managing the flow of goods/services of an organization. It involves raw materials storage, transportation, inventory management, distribution and procurement.
Effective supply chain management (SCM) has evolved as an essential prerequisite of securing competitive advantage and boosting organizational performance as supply chain is an integral part of the organization. This article covers the seven most popular SCM practices (Strategic Supplier Partnership, customer relationship, level and quality of information sharing, demand management, procurement, inventory management,) and describes how SCM can give a company competitive edge and improved performance.
According to Routroy and Shankar (2014), supply chain systems are becoming increasingly lengthy and complex. This is an indication that the modern global marketplace has become dynamic in nature. Supply chains are very complex, with a lot of parallel physical and information flows taking place so that products are delivered in the correct quantities, to the right place in a cost-effective manner. As a result of the forgoing situation, it has been suggested that supply chains may not be the most accurate term to define the interactions but supply networks may be a rather more precise term to describe the situation. However, the focus on achieving more efficient supply chains has rendered them more prone to disruptions (Jüttner, 2005).
Walmart has one of the largest supply chains in the world, it’s successfully delivering products to 200 million customers more than 11000 stores in 27 countries. The phenomenal growth of Wal-Mart is associated to its continued focus on customer needs and reducing cost through efficient supply chain management practices. In general, the step of SCM it follows are begins from suppliers who row materials, equipment’s and other ingredients to manufacturer, manufacturer use those materials to produce finished goods, from manufacturer Walmart purchase huge products then transport it to distribution centers then to retail store to customers. For online sells, it passes ordered products directly from nearby stores or
Q.1 Briefly describe the business processes supported by a Supply Chain Management (SCM) information system. In a global business like Emerson what are the advantages and disadvantages of using a SCM information system? With Emerson’s many divisions using different suppliers, what would be the benefits of using a single SCM information system for all of its divisions?
However, despite the huge investment in SCM software systems, they did not provide desired Return On Investment (ROI). The main reason is that these systems mostly provide only transaction-based functionality. They lack the sophisticated analytical capabilities required to provide an integrated view of the supply chain. This is where Business Intelligence (BI) tools like data warehousing, ETL (Extraction, Transformation, and Loading), data mining, and OLAP (On-Line Analytical Processing) can help adequately analyze operational effectiveness across the supply chain. 1.1 Supply Chain Performance Measurement
Supply chain is long and penetrates almost all business processes. The chain can extend from raw materials to final sales or deliveries to end users. It connects an organization with multiple levels of customers as well as suppliers, and acts as a channel on which to exchange information and transfer orders in terms of product flow (CIPS, 2013). The role of supply chain plays in a business determines the necessity of supply chain management (SCM) improvement. According to APICS Dictionary (2016), SCM involves “design, planning, execution, control, and monitoring of supply chain activities”. It affects
Supply chain management (SCM) systems have been a new and steady buzz word from late last century up to today. Large companies depend on SCM systems to reduce cost and increase revenue. This article explores the relevant use of SCM systems in today’s business world through different means of analysis, such as SCM performance, variables associated with cost and revenues, and business, supplier and customer relationships. It advocates for their use and provide quantitative analytics to support their position.
DIMCO may gain many advantages by implementing supply management chain. Implementing SCM can reduce problems within the company’s internal functions, external suppliers, and external distributors. Some advantages DIMCO can gain from implementing SCM are as follows; the supply chain would improve the quality of service to the end user; reduce channel cost; and create a competitive advantage. (Reid & Sanders, 2010) The implementations of SCM will strengthen DIMCO partnership with suppliers and distributors. Supply chain management can also prevent such challenges such as the bullwhip effect, caused by erratic replenishment of orders placed on different levels in the supply chain that have no apparent link to final product demand. (Reid & Sanders, 2010) An effective and efficient SCM will allow partners to share information concerning health, safety, government regulations and environmental issues. SCM will provide a common network for communications, suggestions, and feedback. This will assist DIMCO in meeting the need of customers quickly and in an efficient manner. Overall, SCM would assist in